What is aftertax cost of debt and pretax cost of debt

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Jiminy's Cricket Farm issued a 30-year, 10.2 percent semiannual bond 8 years ago. The bond currently sells for 86 percent of its face value. The company’s tax rate is 34 percent. a. What is the pretax cost of debt? b. What is the aftertax cost of debt?

Reference no: EM131566046

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